Building material case Study
•Download as PPT, PDF•
2 likes•272 views
The document provides information on sourcing building materials from China, including decorative handles, resin basins, and extruded aluminum profiles. It outlines objectives to identify and qualify competitive suppliers in China to expand the client's global sourcing and supply base. Steps include collecting supplier and spend information, identifying potential suppliers, conducting a request for information process, supplier audits, sample development, and contract negotiations to select suppliers. Supplier profiles and quotations are provided for analysis.
More Related Content
What's hot
What's hot (14)
Viewers also liked
Viewers also liked (20)
Similar to Building material case Study
Similar to Building material case Study (20)
More from Dragon Sourcing
More from Dragon Sourcing (20)
Recently uploaded
Recently uploaded (20)
Building material case Study
- 1. Building material case Study Decorative handles, resin basins & extruded aluminum profiles Shanghai 2012 Dragon Sourcing - 龙 源 Your Tailored Sourcing Approach to LCC Sourcing
- 2. 2 Objectives Context To deliver sustainable procurement savings to our client through identifying and fully qualifying competitive suppliers in China for three different categories: decorative handles, resin basins and extruded aluminum profiles, capable of meeting the requirements by: Expanding global sourcing and internationalize our client’s procurement Identifying and qualifying new suppliers in China for decorative handles, aluminum extrusion and resin basins Building up long term relationships with reliable and capable Chinese suppliers and expand our client’s supply base Achieving sustainable and significant savings © 2012 Dragon Sourcing. All rights reserved.
- 3. 3 Steps November December January February 1 Collect detailed spend information about the category such as technical requirements, standards applied, material specification, drawings, pictures, consolidated volume by our client consuming factories, and current unit prices 2 Collect one representative sample of the products to be sourced in our Shanghai office 3 Identify list of potential suppliers China to include in the RFI / RFQ process 4 Send RFI / RFQ to include all key supplier qualification criteria (e.g.: financial, technology, manufacturing capability, corporate responsibility, quality…) and quotation requirements 5 Administer the RFI / RFQ process 6 Analyze responses and use balance score carding process together with our client’s management team to rank suppliers and recommend suppliers which our client needs to take through a formal qualification process 7 Jointly develop with our client the structure of the audit report 8 Carry out audits (either alone or jointly with clients auditors or buyers) for the short listed suppliers that appear attractive and competitive based on RFI/RFQ process 9 Issue audit reports and rank suppliers based on audit and price competitiveness 10 Recommend which suppliers to move to sample development stage and manage sample development stage 11 Based on sample quality select suppliers with who to enter into final contract negotiations and support the contract negotiation process MilestonesStarted FinishedNot-started Delayed Work plan and timeline © 2012 Dragon Sourcing. All rights reserved. Phase 1 Phase 2 As too bulky, samples of basins cannot be sent to DS Shanghai office Handles samples received to DS Shanghai office today Samples currently not mandatory
- 4. Basins Product name Product specifications Annual quantity Drawings Resin basin n80- plan N 80 807x457x190 mm 10,000 pcs Resin basin n120- plan N120 1205x457x190 mm 6,000 pcs Resin basin k80- plan K60 602x410x148 mm 3,000 pcs 4© 2012 Dragon Sourcing. All rights reserved.
- 5. Product name Product specifications Annual quantity Pictures ABS handle with matt aluminum finishing (reference FB 92) Interaxial 96 mm 379,000 pcs ABS handle with matt aluminum finishing (reference 521440100AA) Interaxial 160 mm 481,000 pcs Zamak handle (reference 52143710000) Interaxial 160 mm 70,000 pcs 5 Decorative handles © 2012 Dragon Sourcing. All rights reserved.
- 6. Aluminium Profiles Product number Product specifications Annual quantity in kg Drawings 00059951 Kg/Ml: 0.32 Length (mm): 5,500 Part weight (kg): 1.76 34,000 00059963 Kg/Ml: 0.82 Length (mm): 5,500 Part weight (kg): 4.51 31,000 00059952 Kg/Ml: 0.41 Length (mm): 5,500 Part weight (kg): 2.26 30,000 00051966 Kg/Ml: 1.82 Length (mm): 3,250 Part weight (kg): 5.90 26,000 00059979 Kg/Ml: 0.69 Length (mm): 5,700 Part weight (kg): 3.95 24,000 00059947 Kg/Ml: 0.23 Length (mm): 5,500 Part weight (kg): 1.27 24,000 6© 2012 Dragon Sourcing. All rights reserved.
- 7. Basins supplier base 7 Xinjiang Gansu Jiangxi Zhejiang BEIJING Jiangsu Guangxi Hunan Hubei Qinghai Ningxi a Shaanxi Anhui Fujian Neimongu Shanxi Shandon g Xizang Sichuan Yunan Guizhou Henan Jilin Liaoning Hebe i Guangdong Gansu SHANGHAI Hong Kong Taiwan Heilongjiang Sichuan Neimongu Heilongjiang Province # of suppliers Anhui 1 Fujian 1 Guangdong 16 Hong Kong 2 Jiangsu 1 Shanghai 3 Zhejiang 38 Total 62 © 2012 Dragon Sourcing. All rights reserved.
- 8. 8 Basins quotations © 2012 Dragon Sourcing. All rights reserved. 35 65 30 Client’s current FOB price paid
- 9. Supply base for decorative handles 9 Province # of suppliers Guangdong 44 Hebei 1 Jiangsu 4 Shanghai 1 Zhejiang 51 Total 101 Xinjiang Gansu Jiangxi Zhejiang BEIJING Jiangsu Guangxi Hunan Hubei Qinghai Ningxi a Shaanxi Anhui Fujian Neimongu Shanxi Shandon g Xizang Sichuan Yunan Guizhou Henan Jilin Liaoning Hebe i Guangdong Gansu SHANGHAI Hong Kong Taiwan Heilongjiang Sichuan Neimongu Heilongjiang © 2012 Dragon Sourcing. All rights reserved.
- 10. 10 Decorative handles quotations © 2012 Dragon Sourcing. All rights reserved. Client’s current FOB price paid 0.85 0.19 0.16
- 11. Aluminium extrusion supply base 11 Xinjiang Gansu Jiangxi Zhejiang BEIJING Jiangsu Guangxi Hunan Hubei Qinghai Ningxi a Shaanxi Anhui Fujian Neimongu Shanxi Shandon g Xizang Sichuan Yunan Guizhou Henan Jilin Liaoning Hebe i Guangdong Gansu SHANGHAI Hong Kong Taiwan Heilongjiang Sichuan Neimongu Heilongjiang Province # of suppliers Anhui 2 Beijing 1 Chongqing 2 Fujian 8 Guangdong 58 Guangxi 1 Hebei 3 Heilongjiang 1 Hubei 2 Hunan 1 Jiangsu 30 Liaoning 3 Shandong 9 Shanghai 9 Sichuan 1 Tianjin 1 Zhejiang 13 Total 145 © 2012 Dragon Sourcing. All rights reserved.
- 12. Aluminum extruded profiles: Supplier RFI score ranking © 2010 Dragon Sourcing. All rights reserved. 12 70
- 13. 13 Aluminium extrusion quotations © 2012 Dragon Sourcing. All rights reserved. Client’s current FOB price paid 3.4 3.4 3.4
- 14. Supplier Y Business overview Company Name Supplier Y Town Shenzhen Province Guangdong Company Website N/A Contact Person N/A Title N/A Email N/A Tel N/A Mobile phone N/A Business Information Manufacturer or trader Manufacturer Ownership (State Owned/ Private/Foreign Investment) Enterprise With Sole Investment Year Founded 1993 Registration capital (RMB) 5M HK$ Have export license (Yes/No) Yes How many years of export experience 18years work floor size (m²) 16,000 sqm Main type of products ? Cabinet Handle and Knob, Furniture Handle and Knob, Bathroom Accessories and related Hardware. Decorative handles category- company profile Turnover (in RMB) 2009 115M 2010 120M Forecast 2011 110M Sales breakdown per region (2010) USA (%) 10% Western Europe (%) 35% Japan (%) 10% Others (%) 55% Top 3 Customers Customer name Country Sales % B&Q China UK 15% Haier China 15% Homeart China 15% Human Resources How many employees in total? +360 Employees in sales & management 12 Employees in R&D 22 Employees in QC 30 Number of workers 320 Corporate Responsibility Adhere to all rules and regulations in respect to (Yes/No) Child labour Yes Environmental issues Yes Health and safety issues Yes 14© 2012 Dragon Sourcing. All rights reserved.
- 15. Supplier Y Production Capacity & Quality management Production Capacity & Machinery Major categories of products manufacturing Yearly production capacity (in PCS) 2010 produced volume (in PCS) % Exported in 2010 Zinc Alloy Pull Handles 12M 9M 70% Aluminium Alloy Pull Handles 8M 5M 70% Plastic Pull Handles 6M 3.5M 80% Ceramic Pull Handles 10M 5M 90% Door Locks and Knobs 6M 2M 60% Maintenance Preventative maintenance programme (Y/N) Yes Production equipment Equipment Producer Date acquired Quantity Die casting machine L.K 2005 5 sets Grinding machine LI-0618 2004 2 sets Drilling machine Z 516 2005 10 sets Milling machine LT-3S 2004 4 sets EDM HD-430 2004 1 set Current level capacity for the next 6 months? 65% Inventory Management Use of ERP (Y/N) Yes Follow FIFO and product traceability Yes Can you produce ABS handles with matt aluminum finishing?(Y/N) Yes Can you produce Zamak handles (with aluminum finishing)? (Y/N) Yes Quality certifications Certificate Y/N Date of certification Expiration date Certificate number Certifying orga ISO 9000 No N/A N/A N/A N/A ISO 9001 Yes 2.9.08 1.9.11 110807046 Moody Intl ISO 14000 No N/A N/A N/A N/A Products compliant with CE? (Y/N) Yes Production Capacity Quality Management Quality control and testing Managing traceability in production process Tracking number with ERP Experience with AQF? Yes Formal QC criteria in house for QC (Y/N). Description quality control in each of production process from incoming materials, engineering, fabrication, processing, production up to shipment. Daily on line inspection(Y/N). How often? Around 100% inspection, and AQL before shipment 15© 2012 Dragon Sourcing. All rights reserved. Decorative handles category- company profile
- 16. Supplier Y Factory pictures 16© 2012 Dragon Sourcing. All rights reserved. Decorative handles category- company profile